New discovery confirms light oil in Carioca area

26 January 2011

New discovery confirms light oil in Carioca area, offshore Brazil

BG Group has today confirmed a new discovery of light oil in Block BM-S-9 in the Santos Basin, offshore Brazil.

The discovery well 3-BRSA-861-SPS, informally known as Carioca North-East, is located in a water depth of 2 151 metres, approximately 275 kilometres off the coast of São Paulo state and nine kilometres north-east of the original Carioca discovery well*.

Initial analysis of the discovery has confirmed the presence of a light oil accumulation (approximately 26° API) in a 200-metre reservoir section. Drilling on Carioca North-East has been concluded and drill stem tests will be conducted in due course.

BG Group has a 30% interest in Block BM-S-9 which is comprised of two appraisal areas - Guará** and Carioca (Petrobras 45%, operator and Repsol 25%).

-ends-

Notes to Editors:

* http://www.bg-group.com/MediaCentre/PressArchive/2007/Pages/090507-sx.aspx

** http://www.bg-group.com/MediaCentre/Press/Pages/2Nov2010.aspx

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

BG Group also has a 25% interest Block BM-S-11 offshore Brazil which contains the Lula, Cernambi*** and Iara discoveries (Petrobras, operator 65%, Petrogal 10%).

*** http://www.bg-group.com/MediaCentre/Press/Pages/29Dec2010.aspx

Picture Desks:

For images of BG Group visit:  www.vismedia.co.uk (requires additional registration)

Contact:

Neil Burrows: +44 (0) 118 929 2462 [email protected]

Jo Thethi: +44 (0) 118 929 3110 [email protected]

Out of Hours Media Mobile: +44 (0) 7917 185 707

Investor Relations: +44 (0) 118 929 3025 [email protected]

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2009. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.